Grayscale Introduces Quarterly Cash Distribution for Solana ETF Staking Rewards

Introduction of Quarterly Cash Distribution

On the 17th, U.S. asset management firm Grayscale submitted a supplemental prospectus to the SEC to amend the trust agreement for the Grayscale Solana Staking Physical ETF. The amendment is set to take effect around August 7, 2026, introducing a mechanism to cash out staking rewards at least once a quarter and distribute them to shareholders.

Under the new framework, the staking rewards from SOL held by GSOL will be converted to cash, and the net amount, after deducting sponsor fees and other expenses, will be distributed to shareholders. The distribution amount will depend on the actual staking rewards received during each period, and the SEC documents explicitly state that there is no guarantee of a fixed amount.

GSOL allocates 100% of its SOL holdings to staking, with an annual gross staking yield of approximately 6.1%. Previously, staking rewards were accumulated within the fund, but this amendment will transition the rewards to be directly returned to investors.

Significant Fee Reduction

As of June 25, 2026, Grayscale reduced the sponsor fee for GSOL from 0.35% to 0.19%. At the same time, the staking fee, which is Grayscale's share of the staking rewards, was significantly cut from 23% to 7%.

When the staking fee was 23%, Grayscale retained about one-fourth of the staking rewards before returning the remainder to shareholders. The reduction to 7% will greatly improve the effective yield received by shareholders.

Background and Competitive Landscape of GSOL

GSOL was established in November 2021 as a private placement (private investment trust) and has been traded over-the-counter for an extended period. It is set to be listed on the NYSE Arca on October 29, 2025, allowing individual investors to access it through the exchange.

The upcoming quarterly cash distribution follows the framework of the Grayscale Ethereum Staking Physical ETF, which began cash distributions in January 2026.

Meanwhile, the competing REX Osprey SOL+ Staking Physical ETF has already implemented monthly distributions, leading GSOL in distribution frequency.

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